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Your BIOS does not support HDDs over 127GB. Try to get a BIOS update for your motherboard (or IDE controller if you are using one on a card, but this is highly unlikely). Failing that, get drive overlay software such as OnTrack, or a modified version of OnTrack from your HDD vendor, i.e. MaxBlast for Maxtor drives. Usually, HDDs come with a CD or floppy in the package that has drive overlay and formatting software included, but this isn’t 100%.

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Check to see if you have a second partition (drive D) on your hard drive. If so, it could account for the missing gigabits.
Also, note that a 160 GB drive will format to about 152 GB or thereabouts. The balance of the space after formatting cannot be reclaimed.
DARY

I would consider that more of a possibility if it had not come out to 127GB, which is a known value for many BIOSes that are not quite up to date but still not particularly old (in which case at least two other known constants exist).

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